The Structured Finance Association (SFA) applauded the decision today by the Federal Housing Finance Agency to lower the previously announced UMBS Fee from 50 basis points to 9.375 basis points, a reduction of more than 80 percent. The FHFA said the reduced fee will go into effect April 1.

“We greatly appreciate the FHFA fee decision as an interim step to protect the viability of UMBS,” said Michael Bright, CEO of SFA.  “We look forward to working with the FHFA on any additional measures needed to protect against a bifurcation of the UMBS security in the years to come and to protect the liquidity UMBS has brought to the system.”

SFA has engaged with the FHFA on this issue, which echoes SFA’s principles as outlined in a letter on September 12, 2022, which supports the need of the FHFA to balance UMBS liquidity and market certainty with the safety and soundness of the GSEs.